The wealth of billionaires is sensitive to a variety of factors from global risks to changes in their private life. An enormous challenge for tycoons is to protect their fortune amid the global economic crisis. Remarkably, some brain boxes manage to multiply their wealth amid the ongoing economic havoc. According to the Bloomberg Billionaires Index, a daily ranking of the world’s richest people, Elon Musk has outpaced legendary investor Warren Buffett. In July, the CEO of Tesla Inc. and Space X is ranked seventh richest person in the world.
Bloomberg News reported that Elon Musk’s net worth zoomed by $6.1 billion following a stellar performance of Tesla’s stock. Analysts recorded an 11% jump in the stock of the electric car manufacturer. As a result, Elon Musk’s fortune soared to a whopping $70.5.billion that enabled him to advance a rank higher on the billionaire’s list. At the same time, chairman and CEO of Berkshire Hathaway Warren Buffett with his wealth of $69.2 billion retreated to the 10th rank in the survey.
In the previous week, Buffett’s net worth dropped when he donated $2.9 billion to charity. When it comes to Tesla, its shares skyrocketed 500% over the latest 12 months, thus breaking historic highs. Robust sales of its Model 3 sedan account for such a staggering rally in the stock market. Tesla’s stock climbed 38% since July 1, 2020. Notably, a day before the company reported its delivery figures for Q2 2020.
In case sales of electric cars are better than market expectations, investors will put Tesla’s profit margin on the back burner. Innovations and environmental safety will be given top priority. Analysts at Credit Suisse believe that Musk’s company has a fair chance to hold pole position in the electric vehicle market. Analysts Dan Levy and AJ Denham said they see “multiple factors responsible for the recent sharp run-up in Tesla stock,” including “EV euphoria”. Moreover, they doubled a one-year outlook for Tesla’s stock to $1,400 from $700, though they warned that its shares at current levels are “priced to perfection.”
